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Brysk2011
Posts: 1
Registered: ‎09-18-2011

Advice please on Sallie-Mae & co-signing

Hello everyone, I'm new here. I've been looking for information regarding student loans in default, specifically in terms of co-signers and legal actions that Sallie Mae can take against a co-signer. I've been searching the internet for a while now trying to piece together valid info from other people who are in similar situations, but it seems so much of it is confusing, and varies from state to state, and there is so much mis-information out there, I'm not sure what is accurate and what is just hype. So I figured if I posted questions in a forum like this, some folks with more experience on it than myself might be able to help.

 

To explain my situation as briefly as possible (Sorry but this may get a bit lengthy)

 

In 2007 I took out loans to attend a school seeking a bachelors degree. I have both federal and private loans, but had to have a co-signer for the private loans. My mother co-signed for the private loans, which are the bulk of my loans, which - last I checked, were around $70K (my total student loan debt, including interest that's built up over the last few years, is somewhere around $130K currently, but growing every day).

 

In 2009 I was forced to withdraw, partly due to discrepencies I had with the school (my decision to withdraw was my own, not based on grades or conduct), issues which the school refused to correct, and also due to the insane expense that attending that school was costing me. I tried going to a different school and found that none of the 2 years of credits I'd been killing myself to earn would transfer. Regardless, since then it has not been an easy 2 years. I have not been able to find work since I withdrew from school - primarily due to the fact that there are no jobs available in the area that I live. Those that I have found won't hire me because I've been unemployed since 2007 (the school I attended ran 24-7, its virtually impossible for any students there to maintain a job and keep their grades above failing, so most students are forced to live off of student loans for the majority of their enrollment, the school even advises this). I've managed to find various odd jobs to make money here and there, but nowhere near enough to live off of, much less pay anything towards my loans. I've tried going back to school to finish my degree but now I can't because I'm in default on my loans, so financial aid won't even bother with me until they're caught up. 

 

My federal loans are in deferrment until december. I've never been able to make a payment on any of my loans, not even interest payments. Of course, Sallie Mae calls about 20 times a day, every day, and has been doing so since sometime in summer of 2010. I've done the deferrment program with SM twice now, at $150 each time, hoping that by the end of the 3-month period I will have found some type of steady work and can start making payments, but that hasn't happened and I can't afford another $150 for their 3 months of deferrment that does no good to begin with. My options are basically feed myself, with the little bit of money I do manage to get, or pay them. I don't qualify for any type of unemployment as I'm not considered a resident of the state I live in, and attended school in a different state, of which I never worked because I was in school the whole time I lived there. So I've been forced to live with family until I can figure out what to do. The whole reason I went to school was to get a degree and build a career and future for myself, as I was sick of working minimum wage dead-end jobs. Now I'm in a worse situation than I was before I went to school. Apparently this is the american dream.

 

SO my question is, what can Sallie Mae do to my mother, who is the co-signer for these loans? My parents own their home, my father works and will soon be retiring, My mother has never worked, but she is the only co-signer on my loans. (Her credit is better than my dad's). I don't know if she is considered a co-owner on their home or any property or not, but can Sallie Mae have any affect on my father? He has no connection to being a co-signer or anything to do with my loans, but since he's married to my mom, who is the co-signer, is he equally responsible? I'm afraid they will be able to affect my mother's bank account and property. I don't know what exactly she has, but I do know she can't afford to make any payments or she would have. I have tried to discuss this with both of my parents - I'm not the deadbeat kid that is trying to skip out on my responsibilities - but every time I try to bring it up to her, she doesn't want to think about it. She ignores the calls from SM. I've told her that they can do some pretty nasty things but she refuses to believe me for whatever reasons, and any information I try to present to her she just ignores. (This is pretty much the same response I got from both my parents when I was trying to get into school to begin with. I let them know about every financial issue that ever came up with student loans, all she did is sign and ignore. I don't think she ever even read the terms of service but I provided them every time). My dad's only answer is to ignore them. He really doesn't think about it at all because it doesn't affect him. The only thing I own is my truck, which is 10 years old, so I don't think it has much value in SM's eyes and since it's my only source of transportation, losing it would pretty much prevent me from ever finding any kind of work. 

 

So in short, I'm wondering what SM can do financially to my parents, in terms of any income they have, to include retirement and SS which they will soon start collecting, properties, etc. 

 

Thanks for anyone's input here.

 

 

 

 

Established Contributor
dharalex
Posts: 607
Registered: ‎09-08-2011

Re: Advice please on Sallie-Mae & co-signing

 You are right to be concerned. Defaulting on student loans is big stuff. I know from experience. Almost everything in life is forgivable and manageable except SL default! lol But seriously, they have the right to sue you and your mother. They, of course, will go after the one with the most money. The more that is owed, the more likely they will entertain getting it back. And not talking to them obviously doesn't make things go away. The good news is, the Sallie Mae loans will wait a loooong time to do something like that. The bad news is, they wait until your loans have doubled and tripled in interest before taking action!

 

I would have your mom pull her credit report and see if they have been doing soft pulls. They may be trying to figure out if she is a big enough fish to go after. They may do nothing. But you just don't know. Now for private loans. they will sue you! And that includes your mom. They have the right to garnish  IRS refunds without a judgement, just a notification of default. They can take her to court and receive a judgement for the loan which could then mean garnishment of a percentage of her limited income. How much depends on the state you live in.

 

Please don't be offended, but I recommend you do anything to work anywhere. And I'm not excluding McDonald's, a gas  station, school bus driver, temp services....anything to start paying SOMETHING back! Your deferment is limited and December is around the corner. These folks really don't want to sue you. It's time consuming and expensive. Showing some kind of effort may keep them at bay. I think that's the least you could do to help protect your mom.



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Valued Contributor
IOBA
Posts: 2,659
Registered: ‎08-13-2009

Re: Advice please on Sallie-Mae & co-signing

Do your parents live in a community property state?

 

I don't have a link to the newspaper article, but I do remember reading that in some cases, people are being arrested for defaulting on their student loans.   Not saying this would happen to your or to your mom, but it could.

 

Why is your mom ignoring this?  Doesn't want to talk about finances?  Doesn't want to help pay the loan back?   Afraid that their retirement plans are going to be affected?

 

With your current situation, please don't look down your nose at a job at McDonalds, or with the garbage company, or mowing lawns for cash.

 

I hope you find legal sources of income soon.

Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009

Re: Advice please on Sallie-Mae & co-signing


IOBA wrote:

Do your parents live in a community property state?

 

I don't have a link to the newspaper article, but I do remember reading that in some cases, people are being arrested for defaulting on their student loans.   Not saying this would happen to your or to your mom, but it could.

 

Why is your mom ignoring this?  Doesn't want to talk about finances?  Doesn't want to help pay the loan back?   Afraid that their retirement plans are going to be affected?

 

With your current situation, please don't look down your nose at a job at McDonalds, or with the garbage company, or mowing lawns for cash.

 

I hope you find legal sources of income soon.


Can you give a source for this? With all due respect this is not England in the 1600's. No one can be arrested and/or sent to jail for unpaid debts. Debtor prisons no longer exist.

 

If there is some type of criminal act such as fraud involved in a SL situation then that is a different matter and certainly charges can be filed. But simply having unpaid debt is a civil situation; not a criminal one.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Valued Contributor
IOBA
Posts: 2,659
Registered: ‎08-13-2009

Re: Advice please on Sallie-Mae & co-signing

MarineVietVet - as I mentioned, I don't have a link for the articles I had read.  Maybe a google search would show the articles.  The one that really stands out in my memory was the women who defaulted on her student loans, the SWAT team showed up at her last known address, and barged in.  Scared her husband and kids.  I want to say that happened in Florida, but I am not sure.

 

Under articles (here on this website) there are some recent links to creditors (in general) who are suing people.  The people don't show up in court and a warrant is issued for their arrest.  The people are arrested and go to jail.  

 

It's true we don't have debtors prison anymore.   It's also true that creditors/CA's are becoming more aggressive in collecting what they allege to be "debt".

Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009

Re: Advice please on Sallie-Mae & co-signing

[ Edited ]

IOBA wrote:

MarineVietVet - as I mentioned, I don't have a link for the articles I had read.  Maybe a google search would show the articles.  The one that really stands out in my memory was the women who defaulted on her student loans, the SWAT team showed up at her last known address, and barged in.  Scared her husband and kids.  I want to say that happened in Florida, but I am not sure.

 

Under articles (here on this website) there are some recent links to creditors (in general) who are suing people.  The people don't show up in court and a warrant is issued for their arrest.  The people are arrested and go to jail.  

 

It's true we don't have debtors prison anymore.   It's also true that creditors/CA's are becoming more aggressive in collecting what they allege to be "debt".


I stand by my statement though that no one can be arrested simply for not paying a debt. There has to be some underlying criminality involved. A judge can and will order the arrest of someone who disobeys a lawful court order but they will not be arrested just because they don't show up for a judgment hearing.

 

If you can find documented proof of anyone being arrested and/or going to jail for unpaid debt (and no crimes being committed) please post it.

 

Edited for a typo.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Valued Member
Trondul
Posts: 31
Registered: ‎04-14-2011

Re: Advice please on Sallie-Mae & co-signing

The SWAT team case involved fraud and not just a simple default.  It caught my attention because at the time I had a rather sizable default.....(since rehabbed)

New Visitor
peanuts
Posts: 8
Registered: ‎10-15-2008

Re: Advice please on Sallie-Mae & co-signing

Then go to FB and see all the posts and sign the petition.

Don't take out student loans until you go to this site and read up on what could and might happen to you.

 

Then go to FB and see all the posts and sign the petition.

 

If you co sign you will be held responsible so use extreme caution.

 

 

 

 

Don't take out student loans until you go to this site and read up on what could and might happen to you.

 

http://www.forgivestudentloandebt.com/

 

Valued Contributor
IOBA
Posts: 2,659
Registered: ‎08-13-2009

Re: Advice please on Sallie-Mae & co-signing

Here is the link/URL for myFICO Credit in the News that talks about people being arrested for ignoring court orders regarding collections.  It doesn't happen everywhere, but more and more companies are being very aggressive in trying to collect debt.   

 

http://ficoforums.myfico.com/t5/Credit-in-the-News/CREDIT-CARD-BULLY-S/td-p/690716

Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009

Re: Advice please on Sallie-Mae & co-signing


IOBA wrote:

Here is the link/URL for myFICO Credit in the News that talks about people being arrested for ignoring court orders regarding collections.  It doesn't happen everywhere, but more and more companies are being very aggressive in trying to collect debt.   

 

http://ficoforums.myfico.com/t5/Credit-in-the-News/CREDIT-CARD-BULLY-S/td-p/690716



That is the key phrase. They were arrested for ignoring a court order; not just because they didn't pay a debt. There is a huge difference.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".


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